Step 1: You get full debt advice
Before a Trust Deed is recommended, you should go through your full financial position: income, household bills, priority debts, unsecured debts, assets, and any risks such as rent arrears, mortgage arrears, or court action.
You should also be told about alternatives, such as a Debt Management Plan, DAS (Debt Arrangement Scheme), sequestration, token payments, or negotiating directly with creditors.
Step 2: Your affordability is assessed
Your adviser or insolvency practitioner looks at your disposable income after reasonable essential living costs. This helps decide whether a monthly contribution is realistic and sustainable.
Step 3: Assets are reviewed
Your trustee must consider whether you own assets, such as property equity, a vehicle, savings, or other items of value. Owning assets does not always rule out a Trust Deed, but it can change how the arrangement is structured.
Step 4: The Trust Deed is drafted
If suitable, the insolvency practitioner prepares the formal Trust Deed proposal, including your payment, term, included debts, and how assets will be treated.
Step 5: You sign the documents
You should only sign once you fully understand what is included, what is excluded, what happens if your income changes, and how missed payments or home equity will be handled.
Step 6: Creditors are notified
After signing, creditors are informed. You may still receive some contact while systems update, but this often starts to reduce as the case progresses.
Step 7: The Trust Deed may become Protected
If the legal conditions are met and there is not enough valid objection, the Trust Deed can become protected. This generally improves legal protection from included creditors.
Step 8: You make monthly payments
You make the agreed contribution and must keep your trustee updated if anything changes.
Step 9: Your case is reviewed
Periodic reviews are normal. If your income rises, your payment may increase. If your circumstances worsen, your payment may be reduced or the arrangement may be varied if appropriate.
Step 10: You complete the arrangement
If you comply with the terms, make the required contributions, and deal with any agreed asset matters, the Trust Deed can complete and remaining qualifying unsecured debt may be written off.